8 Most Undervalued EV Stocks to Buy According to Hedge Funds

6. Toyota Motor Corp. (NYSE:TM)

Forward P/E Ratio as of March 7: 9.22

Number of Hedge Fund Holders: 13

Toyota Motor Corp. (NYSE:TM) is a global automotive manufacturer. It operates through automotive, financial services, and other segments and designs, produces, and sells a range of vehicles. These include passenger cars, commercial vehicles, and EVs, under the Toyota and Lexus brands.

The company is transitioning from a hybrid-heavy portfolio to increasing its EV presence. However, 2024 saw less than 200,000 EV sales in the first 9 months. Still, the company targets 3.5 million annual BEV sales by 2030, with at least 30 BEV models in its lineup. Toyota Motor Corp. (NYSE:TM) is also investing $13.5 billion in EV battery development by 2030 and aims for solid-state battery commercialization by the same year.

On March 7, Toyota Motor Corp. (NYSE:TM) launched the Bozhi 3X in China, which is the company’s cheapest smart EV, with prices starting at 104,800 yuan and the smart version at 139,800 yuan. The launch saw over 10,000 orders within an hour of its release. Earlier on February 6, Macquarie analyst upgraded the company from Neutral to Outperform. Analysts expect the company’s near-term earnings to be weak due to slow volume recovery, but also predict that production stabilization will lead to steadier future earnings.